Chess Builders signs $170M refi with MF1 Capital for 218-unit Vinegar Hill rental

Chess Builders through the entity Toe Front Realty LLC as borrower signed a refi loan with lender MF1 Capital through the entity Mf1 Capital LLC valued at $170 million for the 218-unit residential elevator building (D6) at 218 Front Street in Vinegar Hill, Brooklyn.
On the lot, there is a new building construction project, B00651570, for a 218-unit, 147,196 square-foot R-2 building. The project was submitted by Chess Builders and Cheskel Schwimmer and filed by Cheskel Schwimmer with plans filed December 30, 2021 and permitted April 11, 2023.
The deal closed on October 10, 2024 and was recorded on October 29, 2024. The prior lender was Valley National Bank which held debt that had an original loan amount of $135 million.The property has 231,422 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $734 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The owner bought the property on October 27, 2021, for $48.5 million. The signatory for Chess Builders was Cheskel Schwimmer. The signatory for MF1 Capital was Carolyn Burgess.

Prior sales and revenue

The 231,422-square-foot property generated revenue of $919,478 or $4 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 218 residential units in Vinegar Hill has 231,422 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 164 feet and is 275 feet deep with a total lot size of 49,537 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $5.1 million. The most recent loan totaled $135 million and was provided by Valley National Bank on October 7, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received two DOB violations, $40,000 in ECB penalties, and $54,170 in OATH penalties in the last year.

The block

On this tax block, PincusCo has identified the owners of two of the nine commercial properties representing 51,871 square feet of the 75,204 square feet. The two identified owners are Cheskel Schwimmer and Bruce A. Brand.
On the tax block, there was one new building construction project filed totaling 147,196 square feet. It is a 218-unit, 147,196 square-foot residential (R-2) building submitted by Chess Builders and Cheskel Schwimmer and filed by Cheskel Schwimmer with plans filed December 30, 2021 and permitted April 11, 2023.

The majority, or 69 percent of the 75,204 square feet of built space are industrial buildings, with elevator buildings next occupying 11 percent of the space.

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